Form 4: Paycom CEO Gifts Shares to Family Trusts, Future Dated

Paycom Software, Inc. CEO, President, and Chairman Chad R. Richison reported gifting 1,792 shares of common stock, with 952 shares transferred to family trusts where he retains indirect beneficial ownership, effective November 21, 2025.

Summary

• Chad R. Richison, CEO, President, and Chairman of Paycom Software, Inc. (PAYC), reported changes in his beneficial ownership of common stock.
• The transactions involved gifts (transaction code 'G') of common stock, with an effective date of November 21, 2025.
• Richison directly disposed of 1,792 shares of common stock via gift.
• Concurrently, various irrevocable trusts for his children and grandchildren, for which he serves as settlor and sole trustee, acquired a total of 952 shares (eight trusts acquired 112 shares each, and one trust acquired 56 shares) via gift from him.
• Following these transactions, Richison's direct beneficial ownership stands at 2,671,566 shares.
• His indirect beneficial ownership includes shares held by multiple family trusts (e.g., Faye Penelope Richison 2023 Irrevocable Trust, Ava L. Richison 2012 Irrevocable Trust) totaling 7,190 shares across these specific trusts, plus 12,500 shares in the Charis Michelle Richison Trust and 3,217,249 shares in Ernest Group, Inc.
• Richison is deemed to beneficially own the shares held by these trusts due to his role as settlor and trustee, or control over the entities.

Sentiment

Score: 5

Explanation: The filing reports a routine insider gift transaction, which is generally neutral in sentiment. The future transaction date is unusual but does not inherently imply positive or negative sentiment regarding the company's operations or stock performance.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's financial performance or strategic direction.

Industry Context

This Form 4 filing details an insider transaction (gift of shares) by a key executive, which is a routine disclosure for publicly traded companies. It does not provide information directly related to broader industry trends or competitive landscape within the human capital management software sector.

Related Party Transactions

• Gifts of common stock from Chad R. Richison to various irrevocable trusts established for the benefit of his children and grandchildren, for which he serves as settlor and sole trustee.

Stakeholder Impact

• Shareholders: The net decrease in Chad R. Richison's total beneficial ownership (direct and indirect where he retains control) by 840 shares represents a minor shift in insider holdings. The overall control structure remains largely unchanged as he retains indirect beneficial ownership of a significant portion of the gifted shares.

Key Dates

Recommendation

This Form 4 filing reports a routine insider gift transaction by the CEO, which is not typically a significant driver of stock price movement or a basis for a strong investment recommendation. The transaction involves a transfer of shares to family trusts, with the CEO retaining indirect beneficial ownership over a substantial portion. This type of transaction does not reflect a change in the company's operational performance, financial health, or strategic outlook. Therefore, a 'hold' recommendation is appropriate as this specific filing provides no new information to alter an existing investment thesis.

Keywords

Paycom Software, PAYC, Chad R. Richison, SEC Form 4, Insider Transaction, Beneficial Ownership, Stock Gift, Family Trust, Corporate Governance